Bosses urge crackdown on red tape

Business leaders have called for a crackdown on red tape to help the ailing UK economy emerge from recession.

The British Chambers of Commerce (BCC) claims new regulations have cost firms £77 billion since 1998.

Its business manifesto called for a moratorium on any new employment law and the scrapping of the rise in employers' national insurance contributions due in 2011.

Despite the pressure on the public finances, the BCC also wants vital infrastructure investment to continue and a greater emphasis on overseas trade.

Director general David Frost said: "The UK's 4.5 million private businesses, not the public sector, will lead this country's economic recovery.

"To make this happen, future governments - from whatever party - must focus on rebuilding our infrastructure, simplifying and reducing the red tape burden, and promoting overseas trade."

Its manifesto warns: "Any increases in business taxes will be tantamount to a tax on jobs and economic recovery."

Congestion caused by under-investment in Britain's roads, railways and airports cost businesses more than £23 billion in 2008, the BCC said. It wants a new national infrastructure investment plan - showing how government will deliver rail improvements, extra airport capacity, better roads, and upgrades to broadband and energy infrastructure.

The BCC also called for a stronger focus on international trade after a recent survey found less than a third of its members exported goods last year.

"We cannot rely on old favourites such as financial services and the public sector to drive recovery," the BCC added.